Swatch Group : Company's earnings release above estimates
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CHF 0 | CHF 0 | CHF 523 | +-NaN% |
The Swiss watchmaker has published its activity for the first semester (July 23). The figures stand above the consensus with a profit increase of 6.1% to CHF 768 million. Certainly, the operating margin decreased by 180 basis points to 22.7%, following the acquisition of Harry Winston, bought one billion dollars, but management stay very optimistic for the second semester.
Technically, the stock is building a technical rebound towards CHF 560. This recovery is very energetic, with a gap, and shows the determination of buyers to take the upper hand. The current development could even exceed the next resistance to reach the bearish gap of May, around CHF 575. A purchase can therefore be set up on current prices by placing a stop loss below the 20-day moving average at CHF 525.